Missouri River Sand Company v. Commissioner of Internal Revenue

ROSS, Circuit Judge.

Missouri River Sand Company (Missouri River Sand) claimed a tax deduction for depletion of sand and gravel deposits located near its processing facilities. The Commissioner of Internal Revenue (Commissioner) disallowed the deduction and the United States Tax Court 1 held that the disallowance was proper since Missouri River Sand did not have an economic interest in the sand and gravel deposits. We affirm.

Missouri River Sand is a commercial sand-dredging company that has processing facilities in two locations on the Missouri River, one near Boonville and the other near…